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Determinant Factors of Trade Industry Performance in Indonesia: AHP Approach

Author

Listed:
  • Malik Cahyadin

    (Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia Author-2-Name: Sutomo Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia Author-3-Name: Lely Ratwianingsih Author-3-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia)

Abstract

"Objective � This research analyses determinant factors and priority factors of trade industry performance based on 15 industries in Indonesia. Today, trade industry tends to develop well in Indonesia. It covers exporters, importers, modern markets (hypermarket and minimarket), and traditional markets. Methodology/Technique � This research uses Analytic Hierarchy Process (AHP) to analyse primary data on factors of trade industry performance. Findings � Research results indicate that there are seven factors on trade industry performance. These are NF (AHP score: 0.37), ICT (0.19), BIT (0.10), BR (0.10), BP (0.09), DC (0.08), and BE (0.07). It means that number of firm becomes the first factor while business efficiency becomes the last factor that drives business performance. Novelty � This finding can be used by trade industry associations and policy makers to manage and regulate firms involved in commerce. In addition, governments can support ICT development to improve trade industry performance."

Suggested Citation

  • Malik Cahyadin, 2017. "Determinant Factors of Trade Industry Performance in Indonesia: AHP Approach," GATR Journals jber130, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber130
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    References listed on IDEAS

    as
    1. Patrick D'Arcy & David Norman & Shalini Shan, 2012. "Costs and Margins in the Retail Supply Chain," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 13-22, June.
    2. Commission, Productivity, 2011. "Economic Structure and Performance of the Australian Retail Industry," Inquiry Reports, Productivity Commission, Government of Australia, number 56.
    3. Pierre Nguimkeu, 2016. "Some effects of business environment on retail firms," Applied Economics, Taylor & Francis Journals, vol. 48(18), pages 1647-1654, April.
    4. Boon Lee, 2013. "Productivity Performance of Singapore’s Retail Sector: A Two-Stage Non-Parametric Approach," Economic Analysis and Policy, Elsevier, vol. 43(1), pages 67-78, March.
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    More about this item

    Keywords

    Determinant Factor; Trade Industry; Business Performance; AHP.;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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